wholesale formula is not fair for distressed seller !

[Gamal Darwish]

if you find a house that ARV 225 k, that you can buy for 155 k and rehab for 25 K, and you have selling cost 15 K ( realtor commission and 3 month holding....) , let us say the total investment amount = 195 K

the net profit = 30 k which is not bad return of 15% in less 3 month from start to sold.

the formula 225 x 70% - 25 k will be the price rehabber want to pay which is 132.5 k which is too little TO SELLER, which sometime leave nothing for the seller to walk away.

what do you think?